Boralex Inc Cl A (BLX) AI Stock Analysis

• Market Cap: C$2.88B
• Dividend Yield: 2.35%
• Average Volume (3M): 386.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -13.45%
• EPS Growth: -112.19%
• Country: CA
• Employees: 822
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.10
• Shares Outstanding: 102,755,360
• 10 Day Avg. Volume: 345,914
• 30 Day Avg. Volume: 386,736
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$38.20
• Price Target Upside: 36.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 52 Neutral
• Price Target: C$28.00 ▼(-0.18% Downside)

Boralex Inc Cl A's overall stock score is primarily impacted by its financial performance challenges, including declining revenue and negative cash flow. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio. The earnings call provided some positive insights into growth initiatives and corporate responsibility, but these are overshadowed by financial and market challenges.

Positive Factors

Strategic Growth Initiatives

Securing significant contracts in New York strengthens Boralex's market position and supports long-term growth in a key strategic region.

Increased Production Capacity

The increase in production capacity indicates operational efficiency and enhances Boralex's ability to meet growing energy demands.

Recognition for Corporate Responsibility

Recognition for corporate responsibility enhances Boralex's brand value and can attract investors focused on sustainable and ethical business practices.

Negative Factors

Declining Revenue and Profitability

Declining revenue and profitability can hinder Boralex's ability to invest in growth and maintain competitive advantage over time.

High Leverage

High leverage increases financial risk and may limit Boralex's flexibility to pursue new opportunities or weather economic downturns.

Negative Cash Flow

Negative cash flow can strain Boralex's financial stability, affecting its ability to fund operations and growth initiatives sustainably.

Boralex Inc Cl A Business Overview & Revenue Model

Company Description

Boralex Inc., together with its subsidiaries, engages in the development, construction, and operation of renewable energy power facilities primarily in Canada, France, and the United States. As of December 31, 2021, the company had interests in 90 wind power stations with an installed capacity of 2,032 megawatts (MW); 16 hydroelectric power stations with a capacity of 181 MW; 12 solar power stations with an installed capacity of 244 MW; and one thermal power station with an installed capacity of 35 MW. It also operates two hydroelectric power stations on behalf of R.S.P. Énergie Inc. Boralex Inc. was incorporated in 1982 and is headquartered in Kingsey Falls, Canada.

How the Company Makes Money

Boralex generates revenue primarily through the sale of electricity produced from its renewable energy facilities. The company operates on a long-term power purchase agreement (PPA) model, which guarantees fixed or predictable prices for the electricity generated, providing stable cash flows. Key revenue streams include contracts with utility companies and other large customers, as well as government incentives and subsidies for renewable energy production. Additionally, Boralex may engage in the sale of renewable energy credits (RECs) and carbon credits, further enhancing its income. Strategic partnerships with local and international stakeholders in the energy sector also bolster its operational capacity and market reach, contributing to its financial performance.

Boralex Inc Cl A Financial Statement Overview

Summary

Boralex Inc Cl A demonstrates strong gross profitability but struggles with net profitability and cash flow generation. The high leverage is a concern, especially with declining revenue and profitability metrics. Stability in operational efficiency and reduction in capital expenditures could improve financial health.

Income Statement

The company has shown inconsistent revenue growth with a decline in the recent TTM period. Gross profit margin is strong at 74.97% for TTM, indicating effective cost management. However, the net profit margin is low at 1.36% for TTM, reflecting challenges in converting revenue into net income. EBITDA margin remains healthy, but the decreasing EBIT margin suggests rising operational costs.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.74, indicating significant leverage which could pose risks if earnings do not improve. The equity ratio is moderate at 21.12%, showing a reasonable level of equity financing. Return on equity is weak at 0.69% for TTM, pointing to inefficiencies in generating profit from shareholders' equity.

Cash Flow

Operating cash flow has decreased significantly, impacting the operating cash flow to net income ratio, which is now 14.27. Free cash flow has turned negative in the TTM period, reflecting high capital expenditures. The free cash flow to net income ratio is negative, indicating difficulty in generating free cash flow from net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	853.00M	1.02B	836.00M	691.00M	633.00M
Gross Profit	358.00M	642.00M	578.00M	538.00M	482.00M
EBITDA	534.00M	517.00M	406.00M	472.00M	410.00M
Net Income	36.00M	78.00M	30.00M	17.00M	55.00M
Balance Sheet
Total Assets	7.60B	6.57B	6.54B	5.75B	5.31B
Cash, Cash Equivalents and Short-Term Investments	592.00M	478.00M	361.00M	259.00M	275.00M
Total Debt	4.30B	3.62B	3.61B	3.91B	3.77B
Total Liabilities	5.58B	4.55B	4.51B	4.54B	4.32B
Stockholders Equity	1.60B	1.63B	1.68B	1.00B	989.00M
Cash Flow
Free Cash Flow	-237.00M	216.00M	257.00M	166.00M	206.00M
Operating Cash Flow	215.00M	496.00M	513.00M	345.00M	362.00M
Investing Cash Flow	-578.00M	-268.00M	-684.00M	-433.00M	-247.00M
Financing Cash Flow	479.00M	-109.00M	261.00M	75.00M	-413.00M

Boralex Inc Cl A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BLX, the sentiment is Neutral. The current price of 28.05 is above the 20-day moving average (MA) of 27.98, below the 50-day MA of 28.12, and below the 200-day MA of 29.00, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 15.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BLX.

Boralex Inc Cl A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INE	―	―	―	―	―	0.97%	―
NPI	―	$6.61B	―	-1.19%	4.92%	-8.39%	-180.67%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
BEP.UN	―	$27.17B	―	-5.97%	4.89%	20.05%	-54.69%
PIF	―	C$292.99M	59.81	-4.34%	5.96%	4.98%	-244.98%
BLX	―	C$2.88B	―	-0.61%	2.35%	-13.45%	-112.19%
AQN	―	$6.19B	―	1.50%	4.57%	-6.96%	-1235.30%

Boralex Inc Cl A Corporate Events

Boralex Inc. Cl A Earnings Call: Growth Amid Challenges

Boralex Inc. Cl A’s recent earnings call painted a balanced picture, highlighting both achievements and challenges. The company reported significant production increases and strategic growth in the U.S., alongside successful financial management. However, these positive aspects were tempered by challenges in EBITDA, lower-than-expected production, and unfavorable conditions affecting cash flows and asset sales.

Boralex Appoints André Courville as New Chair of the Board

Boralex Inc. announced the appointment of André Courville as the new Chair of the Board of Directors, succeeding Alain Rhéaume, who is retiring after 15 years of service. Courville, who has been on the board since 2019, will lead Boralex as it embarks on a new strategic cycle following the unveiling of its 2030 Strategy. His extensive international experience is expected to provide essential leadership to achieve the company’s strategic and financial objectives. This leadership transition is anticipated to support Boralex’s continued growth and commitment to its mission.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Announces CFO Transition Amid Strategic Growth

Boralex Inc. announced the departure of its Chief Financial Officer, Bruno Guilmette, who has been instrumental in the company’s financial growth and strategic planning over the past seven years. His successor, Stéphane Milot, will ensure continuity in leadership and maintain the company’s strong financial position as it enters a new strategic cycle.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.

Boralex Inc. Reports Q2 2025 Results and Advances Renewable Projects

Boralex Inc. reported a decrease in EBITDA, operating income, and net earnings for the second quarter of 2025, despite a 14% increase in production from the previous year. The company is actively pursuing development and construction activities, including new wind farms in France and solar projects in New York State, which are expected to enhance its market position and financial capacity to meet growing demand in target markets.

The most recent analyst rating on (TSE:BLX) stock is a Hold with a C$38.00 price target. To see the full list of analyst forecasts on Boralex Inc Cl A stock, see the TSE:BLX Stock Forecast page.